INSURANCE
What Do You Want Your Legacy to Be?
Estate planning gives you control of what you leave behind for the generations to come.
By Kait Kucy
Estate planning allows you to make important decisions now, so that your wishes will be followed later. | PHOTO: WAVEBREAKMEDIA/ENVATO
SECURING YOUR LEGACY isn’t just about finances. It’s about ensuring your loved ones are supported in the way you intended. Estate planning, including the right life insurance, helps provide for your family, funds important causes and eases financial as well as emotional burdens during difficult times. Take action while you’re in a position to make sound decisions on how you want your estate administered and be reassured that your intentions and desires will be respected.
Legacy planning goes beyond wealth — it’s about the meaningful impact you leave behind. For Dwayne Williams — assistant vice-president, life and health insurance, CAA Club Group — that means creating security for his children, allowing his wife to grieve and move forward, and supporting causes he values. “Securing my legacy means communicating my wishes, providing financial support,” he explains. By prioritizing estate planning, Williams finds comfort in knowing that his voice and values will endure.
Many people delay estate planning because the process seems complex and can be emotionally challenging, but Williams offers a different perspective. “You don’t need to have everything figured out before starting.” Thinking of it as a gift to loved ones can make the process easier. “A simple will or trust can be updated anytime, but having something in place is better than nothing at all.” With the right guidance, securing your legacy is simpler than you might think.
Taking the first step early provides security and prevents complications for loved ones, says Williams. “[But] it requires careful planning, clear documentation and ongoing maintenance.”
“A simple will or trust can be updated anytime, but having something in place is better than nothing at all.”
Here are the essential steps in estate planning.
- Create a legal last will to ensure that assets are distributed according to your wishes.
- Use trusts for greater control to help manage and protect assets, especially for minors.
- Assign guardianship for minor children by designating a trusted guardian in your will.
- Purchase life insurance to protect loved ones from financial burdens and to bypass probate (the court process that validates a will), when the insurance policy has one or more designated beneficiaries.
- Designate beneficiaries for your life insurance, retirement funds and investment account and review them regularly.
- Establish powers of attorney by appointing individuals to make financial and medical decisions in the event that you’re unable to.
- Plan for business succession by outlining who will manage or inherit a business.
- Communicate your estate plan to avoid disputes and ensure clarity for loved ones.
Estate planning not only simplifies the distribution of your estate, it can also save your beneficiaries and heirs a significant amount of money. If you don’t have a legally binding will, your estate needs to go through probate, as does an insurance policy that doesn’t have at least one named beneficiary. In Ontario, the fee for probate on an estate is 1.5 percent, with the first $50,000 being exempt from that fee. Proper estate planning avoids that expense. “Life is unpredictable,” says Williams, “and waiting too long [to secure your legacy] can leave your loved ones unprotected.” With proper estate planning, you stay in control of key decisions such as who will raise your children and how your assets are distributed. “Starting early gives you more options and peace of mind, ensuring your wishes are honoured.” CAA